Cabot Corporation plans to add conductive carbon additives (CCA) capacity in its Pampa, Texas facility to be used in lithium-ion batteries that power electric vehicles.
The US government announced numerous grants and loans to encourage the adoption of electric vehicles, helping the country on its path to carbon neutrality by 2050. This includes $8.1 billion in grants and $25 billion of loans specifically to produce low or zero-emission vehicles or batteries.
Battery manufacturers are clamoring to set up shop in the United States to take advantage of the financial incentives and to be a part of the clean energy transition. Cabot sees this market as ripe for investment, and the government programs as potential funding opportunities for the company in its efforts to expand CCA production capacity in the United States.
“We are at a pivotal moment as the vehicle fleet transitions from internal combustion engines to electric vehicles. CCAs are essential materials to make EV batteries work and expanding battery capacity and building a domestic materials supply chain are critical for the growth of EVs to be realized,” said Sean Keohane, president and chief executive officer of Cabot Corporation.
The Boston-based Cabot Corporation’s history goes back to 1882, when two Cabot brothers began the manufacture of carbon black, used as a colorant and reinforcing filler in tires and to add pigment and wear protection in plastics, paints, and more. Fast forward to 2013, and the company is developing CCAs, an essential component of lithium-ion battery chemistry and are used to provide electrical conductivity to the active battery materials.
Demand for critical materials for EV batteries is expected to continue to grow in the range of 20% to 30% globally over the next five years, Cabot reports, and growth in the U.S. is expected to outpace global demand. The company said it plans to invest approximately $200 million over the next five years focused on expanding the company’s CCA production in the United States.
Cabot expects to invest approximately $75 to $90 million to produce 15,000 metric tons of conductive carbons annually at its existing facility in Pampa, TX. This project is expected to create approximately 75 jobs and is planned to begin operation at the end of 2025. In addition to a manufacturing plant, Cabot also operates a research and development facility and pilot plant in Pampa that focuses on developing new process technology for battery and other applications.
Cabot also intends to make additional investments to expand its U.S. manufacturing and technology footprint over the next five years with plans to invest in new CNT powder and dispersion capacity and to continue extending its portfolio of innovative products for battery applications.
The company reports that in fiscal year 2022 EBITDA in the product line was $29M with a year-over-year increase in revenue of 74%. Cabot Corporation is listed on the NYSE as CBT.
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